5 Funds to Buy for Rising Interest Rates

Protect yourself through a number of fixed-income strategies

Looking at the state of the fixed-income markets lately, it is apparent many participants have gone from blindly trusting that the Federal Reserve will hold interest rates low, to second-guessing just how hawkish the Fed could get before year’s end.

Although the transparency of the Fed’s intentions has been unprecedented, that hasn’t exactly been a good thing for bond investors. As a stronger-than-expected labor market continues to gain momentum, institutions and individuals have been spooked out of their fixed-income positions over fears that the taper timetable could imminently be moved forward.

On a percentage basis since the most recent low, the rise in interest rates has been awe-inspiring. Although we could very well be nearing a point of stabilization in the very near-term, I think it’s prudent to put forth solid investment options that could serve as a life raft in the event we are just in the eye of the hurricane.

A few funds that I find appealing if we continue to see volatility in interest rates include: